Day nursery and school bridging loans
Bridging finance for nurseries and schools.
Nursery bridging loans fund the purchase, refinance or conversion of day nurseries, pre-schools and independent schools in weeks rather than months: to buy a nursery that is already open, buy a building and convert it, or open a second site. Fewer lenders take nurseries and schools than other commercial property, so below you can see who lends on them today and compare their products.
- Compare the bridging market
- We review your case and negotiate the best available terms
- Fast-track completion
Available products, lowest rate pm
- Regulated bridging
- 0.44%
- Loans above £1m
- 0.44%
- Commercial property
- 0.53%
- BoE Bank Rate
- 3.75%
- SONIA
- 3.74%
Recently completed
Bridging cases we've arranged.
Real cases our advisers have placed, from straightforward purchases to the ones other lenders turned down.
Nursery bridging, explained
What lenders look for in a nursery.
How a nursery is valued
A nursery that is open is usually valued as a trading business, by a RICS surveyor who specialises in the sector, who looks at the number of registered places, occupancy and fees as well as the building. A building being converted into a nursery is valued as it stands, with a separate value for when the work is finished.
What the lender will ask about
- Its registration and latest inspection, with Ofsted in England or the equivalent body elsewhere in the UK.
- The number of registered places, occupancy, and how much of the income comes from government-funded hours.
- Trading accounts, and your experience of running nurseries or that of the manager you will use.
- For a conversion: planning, the works and their costs, and how long registration will take.
- How you will repay the loan: your exit.
Planning and use class
In England, day nurseries fall within Class E, the same use class as shops, offices and restaurants, so converting one of those into a nursery may not need planning permission for the change of use. Building work, outdoor play space and parking can still need consent, so check with the council before you buy.
How nursery bridging loans are repaid
- Refinancing onto a commercial mortgage once the nursery is open and its accounts show it trading.
- Selling the nursery as a going concern.
- Selling or refinancing another property you own.
A worked example
You agree to buy an empty former office building for £550,000 to convert into a 60-place day nursery. The lender values it at £550,000 and lends 65% of that: £357,500 for 12 months, with the interest retained. You put in the rest and pay for the £120,000 fit-out yourself, register with Ofsted and open, then refinance onto a commercial mortgage once the nursery has enough trading history.
These figures are only an illustration. The rate, fees and how much you can borrow depend on the lender and your circumstances.
Nurseries and schools on our panel today
- Lenders
- 42
- More on referral
- 1
- Rates from, per month
- 0.59%
- Maximum loan to value
- 80%
Live figures from the lenders on our panel, 1st charge. The rate you're offered depends on your loan, the property and your circumstances.
Compare nursery bridging loans 020 7580 1555How it works
From first figure to funds released.
We're not tied to any lender, so every quote reflects the whole market, not whichever lender we know best.
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Compare the whole market
Bridging solutions from a wide range of lenders, private banks and specialist funds.
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Tailored rate sourcing
Our advisers review your case and negotiate the best terms available across the market.
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Fast-track completion
We manage the application so your offer and completion land exactly when you need them.
FAQs
Your questions, answered.
Can I get a bridging loan on a day nursery?
Yes. A number of specialist lenders lend on nurseries and schools, usually at a lower loan to value than on offices or shops. The figures on this page show how many lenders on our panel lend on them today.
Can I use a bridging loan to convert a building into a nursery?
Yes. Bridging can fund the purchase and, with a refurbishment product, the works. The lender will want to see the costs, the planning position and how long registration will take.
Do I need to be registered with Ofsted before I apply?
Not to buy a building to convert, but the lender will want a realistic plan and timescale for registration. If you are buying a nursery that is already open, the lender will look at its current registration and inspection rating.
Can I buy a nursery business with a bridging loan?
Bridging lenders lend against the property, so the nursery needs to come with the freehold or a long lease. The business itself, its goodwill and equipment, is usually funded another way.
How quickly can a nursery bridging loan complete?
Usually within a few weeks of applying, depending on the valuation and legal work.
About us
A whole-of-market bridging broker.
Bridging Eye is a trading style of Stirling Partners Finance Ltd. We're a bridging finance broker with access to the whole of the market — not tied to any single lender — so every quote reflects a genuinely broad set of options rather than a fixed shortlist.
We arrange both regulated bridging loans (where you or a family member will live in the security property) and unregulated bridging finance for investment, business, and commercial purposes. Because every lender we work with prices and underwrites differently, we compare across the market for your specific circumstances — loan size, property type, region, term, and exit strategy — rather than defaulting to whichever lender we know best.
Stirling Partners Finance Ltd is regulated and authorised by the Financial Conduct Authority (FRN: 304236). See the footer below for our full regulatory and company details.
Authorised & regulated by the FCA · FRN 304236Talk to a broker
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